Global Dividend Payments Almost Double Over Decade
Ben Lofthouse of Janus Henderson
Global dividends broke a new Q2 record in 2019, despite the underlying rate of growth slowing to its lowest level for more than two years amid a global economic deceleration, according to Janus Henderson Investors' Global Dividend Index.
Dividend payments from listed companies reached $513.8bn in Q2 - 1.1% higher than the same period in 2018 in headline terms - with a growth rate of 4.6% on an underlying basis, the firm said.
While the underlying rate of growth was at a two-year low, it was only slightly below the long-run average and in line with Janus Henderson's forecasts, the report added.
Janus Henderson left its forecast for full-year 2019 dividends unchanged at $1.43trn.
Ben Lofthouse, head of global equity income at Janus Henderson, said the slowdown was "not a cause for concern", particularly as "global dividends have been growing very quickly over the last two years".
BofAML survey: Number of fund managers expecting global recession in next year jumps
The pullback did not stop the Janus Henderson Investors Global Dividend Index reaching a record high of 191.0, meaning global dividends have almost doubled since the index began in 2009.
Lofthouse, who manages the Janus Henderson Global Equity Income fund, said: "At this stage in the economic cycle, we are seeing a moderation of dividend increases across a broad range of companies, and the number of cuts is on the rise too.
"The impact of the global economic slowdown is greater in some parts of the world than others, with Europe seeing a particular impact.
"But this is why taking a global approach to income investing is so valuable - the regional and sector diversification brings significant benefits to investors."
The growth in returns to shareholders was helped by record payouts from companies in Japan, Canada, France and Indonesia, while emerging markets was the region that saw the fastest growth thanks to higher figures in Russia and Colombia.
US dividends grew at their slowest rate in two years, up 5.3% on an underlying basis to $121.7bn.
The slowdown was broad-based with most sectors seeing only single-digit growth.
Banks continue to show strong increases, but dividends from auto manufacturers were flat.
In the UK, dividend growth was in line with the global average at 5.3%, helped largely by a special dividend from miner Rio Tinto, with the banking sector also boosting growth.
Growth in both Europe and Asia Pacific was much slower, at 2.6% and 2.2% respectively on an underlying basis.
European dividends also fell 5.3% on a headline basis due to a weak euro.
The European index fell to 134, its lowest level in over a year.
Indias Stock Market Surge: A Sectoral Deep Dive And The Modi Effect
In the landscape of global finance, few markets have captivated investor interest quite like India's, particularly again... Read more
Navigating New Horizons: The Entry Of Crypto-ETNs In The UK Market And Its Ripple Effects
In an unprecedented move that marks a significant pivot in the United Kingdom's regulatory approach to digital assets, t... Read more
Navigating The New Frontier: Investing In The Age Of Artificial Intelligence
In recent months, the financial world has witnessed a phenomenon that has reshaped the landscape of investment: the boom... Read more
The Future Of Finance: How Cryptocurrency ETFs Are Changing The Investment Landscape
In an unprecedented move that marked a milestone for the digital currency world, the U.S. Securities and Exchange Commis... Read more
Financial Markets Embark On A Resilient Path Amidst Macro-Economic Optimism
Author: Brett Hurll &nb... Read more
Nikkei Takes Hit From Japans Vigorous Yen Verbal Intervention, But Yens Gain Lacks Strength
Nikkei tumbled sharply in Asian session today, largely in response to Yen’s rebound late yesterday, which followed s... Read more